The Bombay High Court in its recent judgement has held that the order of attachment with one year period to deposit the amount of the cheque will not prevent the assessee from honoring the cheque.
The petitioner, the Maharaja Log Home OPC Pvt Ltd challenged the order dated 7th September 2021 passed by Judicial Magistrate First Class, Vashi, Belapur Navi Mumbai in Complaint Case under Section 138 of the Negotiable Instruments Act, 1881 issuing process against the petitioner.
The validity of the order has been challenged on the ground that the Income Tax Department withheld the payment of Rs. 99,24,143/- from the account of the petitioner on 3rd April 2020. Therefore, the petitioner was prevented from honoring the cheque for an act beyond his control.
The date of the cheque is 10th February 2021. The date of communication by the bank is 3rd April 2020. From 3rd April 2020 till 10th February 2021 the petitioner had enough time to arrange payment of the cheque issued in favour of the complainant.
It was found that the account of the accused was attached due to non-payment of liability of tax of petitioners. If that is so, the petitioners cannot get the advantage of their wrongs. It is the petitioners on their failure to pay income-tax dues have invited such an order of attachment and now they cannot turn around and say that the circumstances of dishonour of cheque were beyond their control
A Single judge bench comprising Justice Amit Borkar observed that the petitioner had a period of one year to deposit the amount of the cheque after the order of attachment. The Court dismissed the Writ petition.
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